He would need to sell the properties for much more that the originally thought 500K, but with the condition they are in they won't appraise anywhere close to where he needs to be price wise.I ran the numbers several different ways and just can't make it work. 

Residential and commercial properties are assessed at 25% and 40% of appraised value respectively.

So today I purchased a home and paid for that home off of a heloc I had on my personal residents so basically in banks eyes I wrote a check for the new home the seller wanted to do a quick close and didn’t want to lose out on the deal so my question is is there a bank out there that will let me do a cash out refi from day 1 of ownership off of full appraisal for 75-90% LTV To get my heloc paid back and put some money back in my pocket I like to get a conventional 30 yr. mortgage on this property so my rate is locked and don’t jump around property located in Montana

@Kanwar Sodhi the appraisal will verify that it meets the VA requirements.

ADU's are great if you'll hold onto it for a long time but FYI when you try and sell appraisals are tough and low ball since not too many have sold yet to compare to. 

C Class and section 8.Appraisal listed ARV at $1.4M based off of a 9-cap... 

My going in cap is 11% and it appraised for 185k.

The reports are 40-90 pages long and go through the entire house in great detail.Get an appraisal.

, FLOAT the interest rate, get all paperwork in, appraisal ordered, bla bla bla.... and just sit there like a sniper.So that as soon as the mortgage industry capacity issues are solved, boom, you're ready to fire that bullet and lock your rate.

On top of the cash flow I’m being told each unit can appraise at 70K after renovation is complete. 1.